---
title: "Check notice and disclosure before a franchise holds over"
url: "https://ailawframework.com/practice/franchising-and-distribution/check-notice-and-disclosure-before-a-franchise-holds-over"
type: "task"
site: "AI Law Framework"
id: "A34-OB20261022-22"
practice_area: "Franchising & Distribution"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Check notice and disclosure before a franchise holds over

> From the agreement and the correspondence, record the end date of the term, whether the parties propose a month-to-month or other holding-over arrangement, and whether notice and disclosure have already been given.…

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/check-notice-and-disclosure-before-a-franchise-holds-over  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Franchising & Distribution](https://ailawframework.com/practice/franchising-and-distribution.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the agreement and the correspondence, record the end date of the term, whether the parties propose a month-to-month or other holding-over arrangement, and whether notice and disclosure have already been given. Do not draft the notice. |
| What the lawyer must review | The lawyer decides whether the steps for an extension have been done before holding over starts. A franchisee is not automatically entitled to a further term. Instead of renewing or extending, the parties may enter a month-to-month or holding-over arrangement. The obligations for extending a franchise agreement still apply before that arrangement can go ahead, so the franchisor must still give notice and provide disclosure. On the same page, notice of whether the agreement will be extended or another agreement granted is given at least 6 months before the end of the term, or at least one month before the end if the term is less than 6 months. This check does not prepare the end of term notice. Different rules for new vehicle dealership agreements were not opened. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Lawyer review required**

The lawyer checks that notice and disclosure come before holding over. The notice itself is not drafted here.

- What the AI does: From the agreement and the correspondence, record the end date of the term, whether the parties propose a month-to-month or other holding-over arrangement, and whether notice and disclosure have already been given. Do not draft the notice.
- What the lawyer does: The lawyer decides whether the steps for an extension have been done before holding over starts. A franchisee is not automatically entitled to a further term. Instead of renewing or extending, the parties may enter a month-to-month or holding-over arrangement. The obligations for extending a franchise agreement still apply before that arrangement can go ahead, so the franchisor must still give notice and provide disclosure. On the same page, notice of whether the agreement will be extended or another agreement granted is given at least 6 months before the end of the term, or at least one month before the end if the term is less than 6 months. This check does not prepare the end of term notice. Different rules for new vehicle dealership agreements were not opened.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Holding over is not treated as free of the extension notice and disclosure.
2. The term length decides whether the notice timing on the page is six months or one month.
3. New vehicle dealership rules are a different page and were not applied.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/franchising-and-distribution/check-notice-and-disclosure-before-a-franchise-holds-over/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*